BS1- Franchise And Co-operatives Flashcards
Two other disadvantages of a franchise for the franchisor
One franchise can ruin the reputation for everyone else
They will get less profit than expanding themselves

Identify two disadvantages of franchises for the franchisor
It can make the money with little Work
Once set up a little input is needed
State two reasons of the franchisor might decide that franchising the brand is not suitable and/or worthwhile
If it is a small local business
If it is only going to be popular in the one area
State two reasons that somebody might decide that becoming a franchisee is an appropriate way to start there own business
It is already set up so easy to start
It has a lot less risk has already proven to work
Explain what is meant by, a franchise is not a separate type of legal structure
Explain what is meant by a co-operative 
It is a business that is owned and controlled by its members
State three elements that are key to any cooperative business
Owned by members
Do a lot of charity and help Work
All members can make decisions
Identify three advantages of operating as a co-operating
Equal voting rights for members
Limited liability for members
No limit on numbers of members
Identify three disadvantages of operating as a cooperative
Just because you invest more, no extra voting power is gained
Lack of security
Lack of mutual interests
State of stakeholders may benefit from a business operating as a cooperative
Suppliers can be members to help to make decisions
Customers can be members allowing the business to operate as they like
Identify one reason white and not be possible for business to operate as a cooperative
If decisions are needed to be made quickly
If Profit is the main aim
